<终止重大资产重组协议>Incident: The company issued an announcement. The board of directors deliberated and passed the “Bill on Termination of Material Asset Reorganization Matters and Signing”, which will terminate the acquisition of public information and promise not to plan material asset restructuring matters within one month. The termination of the acquisition was determined, and the path of extension transformation continued due to public information that failed to raise funds as planned. As a result, the progress of the fiber-to-home project did not meet expectations, and there is uncertainty about the completion of the 2016 results. The company voluntarily terminated the acquisition and promised not to plan major asset restructuring within one month. The company will continue to position Internet infrastructure operations, and the path of epitaxial transformation will continue to advance. Internet Harbor carries the transformation players. IDC Cloud Computing continues to promote Internet Harbor's commitment to net profit of 40.5 million yuan, 69 million yuan, and 93 million yuan in 16-18. The acquisition of 51% of its shares is expected to be completed by the end of the year. Since the M&A Fund acquired 51% of its shares in 2015, the Internet Harbor business has expanded smoothly. The number of cabinets is expected to reach 5000-6000 by the end of the year. It reduces operating costs through DCI transformation of data centers and SDN between metropolitan areas, and at the same time actively optimizes the customer structure to improve bargaining power. Products and services continue to maintain high gross profit margins. We believe that its technology deployment is in line with the development direction of cloud computing, and we are optimistic about its growth prospects. The concentration of the NetPremium market continues to increase, and profits will stabilize in the long term, and the trend of centralization in the NetSmart industry. As a leading Netcom enterprise, the company will benefit from increased market concentration. In the future, the revenue of the main Internet Premium business will continue to grow, but market competition is still intense, and the long-term profit of this business will stabilize. To maintain the “increase in holdings” rating, the target price is 14 yuan, assuming that the acquisition of 51% of Internet Harbor's shares is completed by the end of the year. It is estimated that the company's 2016-2018 EPS will be 0.21 yuan, 0.33 yuan and 0.38 yuan respectively, and corresponding PE will be 57X/37X/32X respectively. Considering the good growth of Internet Port's performance, we are optimistic that the company will maintain an “increase in holdings” rating around its layout in the field of cloud services. The target price is 14 yuan. Risk warning: The risk that the target company's profit falls short of expectations, and the risk that new business development falls short of expectations.